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Tuesday, Jan. 18: Microsoft (MSFT) will acquire Activision Blizzard (ATVI) for $68.7 billion in one of the largest tech acquisitions ever. The deal is set to be completed in 2023, pending approval by regulators and Activision shareholders. Activision shares shot up on the news.
Activision Blizzard is an electronic gaming & multimedia business based in the US. Activision Blizzard shares (ATVI) are listed on the NASDAQ and all prices are listed in US Dollars. Activision Blizzard employs 9,800 staff and has a trailing 12-month revenue of around $7.4 billion.
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| Latest market close | $76.61 |
|---|---|
| 52-week range | $70.94 - $81.52 |
| 50-day moving average | $75.53 |
| 200-day moving average | $76.68 |
| Wall St. target price | $91.88 |
| PE ratio | 35.2629 |
| Dividend yield | $0.47 (0.62%) |
| Earnings per share (TTM) | $2.13 |
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The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Historical closes compared with the close of $76.61 from 2023-01-27
| 1 week (2023-01-20) | 3.75% |
|---|---|
| 1 month (2022-12-28) | 0.74% |
| 3 months (2022-10-25) | 5.67% |
| 6 months (2022-07-27) | -3.99% |
| 1 year (2022-01-28) | -3.20% |
|---|---|
| 2 years (2021-01-28) | -15.13% |
| 3 years (2020-01-28) | 27.62% |
| 5 years (2018-01-26) | 5.64% |
Valuing Activision Blizzard stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Activision Blizzard's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Activision Blizzard's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 35x. In other words, Activision Blizzard shares trade at around 35x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Activision Blizzard's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.7987. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Activision Blizzard's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Activision Blizzard's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $2.2 billion.
The EBITDA is a measure of a Activision Blizzard's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $7.4 billion |
|---|---|
| Operating margin TTM | 28.12% |
| Gross profit TTM | $6.5 billion |
| Return on assets TTM | 5.22% |
| Return on equity TTM | 9.36% |
| Profit margin | 22.75% |
| Book value | $24.03 |
| Market capitalisation | $58.8 billion |
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Activision Blizzard.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 21.84
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Activision Blizzard's overall score of 21.84 (as at 12/31/2018) is excellent – landing it in it in the 17th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Activision Blizzard is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 4.65/100
Activision Blizzard's environmental score of 4.65 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Activision Blizzard is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 14.46/100
Activision Blizzard's social score of 14.46 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Activision Blizzard is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 12.22/100
Activision Blizzard's governance score puts it squarely in the 7th percentile of companies rated in the same sector. That could suggest that Activision Blizzard is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Activision Blizzard scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Activision Blizzard has, for the most part, managed to keep its nose clean.
Activision Blizzard Inc was last rated for ESG on: 2019-01-01.
| Total ESG score | 21.84 |
|---|---|
| Total ESG percentile | 16.66 |
| Environmental score | 4.65 |
| Environmental score percentile | 7 |
| Social score | 14.46 |
| Social score percentile | 7 |
| Governance score | 12.22 |
| Governance score percentile | 7 |
| Level of controversy | 2 |
Dividend payout ratio: 16.91% of net profits
Recently Activision Blizzard has paid out, on average, around 16.91% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.62% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Activision Blizzard shareholders could enjoy a 0.62% return on their shares, in the form of dividend payments. In Activision Blizzard's case, that would currently equate to about $0.47 per share.
While Activision Blizzard's payout ratio might seem low, this can signify that Activision Blizzard is investing more in its future growth.
Activision Blizzard's most recent dividend payout was on 5 May 2022. The latest dividend was paid out to all shareholders who bought their shares by 12 April 2022 (the "ex-dividend date").
Activision Blizzard's shares were split on a 2:1 basis on 7 September 2008. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Activision Blizzard shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Activision Blizzard shares which in turn could have impacted Activision Blizzard's share price.
Over the last 12 months, Activision Blizzard's shares have ranged in value from as little as $70.94 up to $81.5179. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Activision Blizzard's is 0.4276. This would suggest that Activision Blizzard's shares are less volatile than average (for this exchange).
Activision Blizzard, Inc. , together with its subsidiaries, develops and publishes interactive entertainment content and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Activision, Blizzard, and King. It develops and distributes content and services on video game consoles, personal computers, and mobile devices, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Activision and Blizzard products. The company also maintains a proprietary online gaming service, Battle. net that facilitates digital distribution of content, online social connectivity, and the creation of user-generated content. In addition, it operates esports leagues and offer digital advertising content; and provides warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products.
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